International Journal

Asian Research Consortium of Research in

Organizational Behavior
and
International Journal of Research in Organizational Behavior and Human Resource
Human Resource Management, Vol. 1, No. 3, 2013, pp. 107-115. Management
ISSN 2320-8724 www.aijsh.org

An Investigation of Factors Influencing Job Satisfaction of

Employees in Banking Sector of India
Vangapandu Rama Devi*
Human Resource Management PhD, Professor, KL University, Guntur, India.

Anne Nagini
Human Resource Management, MBA, KL University, Guntur, India.

Received July 4th, 2013; revised July 20th, 2013; accepted July 27th, 2013

Abstract
A satisfied workforce is an asset to any organizations. Nowadays, organizations are considering
workforce as the source of competitive advantage which creates both tangible and intangible benefits for
the organization and as such they are concerned with employees’ satisfaction and well-being. The present
study examines factors influencing job satisfaction of employees in private banking sector. Sample
includes 103 employees drawn from 9 private sector banks in Vijayawada (India) using simple random
sampling method. Primary data were collected using a structured questionnaire and were analyzed using
mean and chi-square test. These factors were classified in three categories such as Organizational Factors,
Job Related Factors, and Personal Factors. Then, the importance of all factors was determined in a
sequence. Further, among demographic information of respondents, the results revealed that there is a
significant relationship between socio-economic and demographic variables of the respondents Such as
Designation, Gender, Age, Marital Status, Experience, Work Status, Nature of Family, Income, Number
of Dependants and job satisfaction; whereas, there is no significant relationship between Qualification,
Nature of the Job and job satisfaction.

Keywords: Job Satisfaction, Banking Sector, Socio-economic and Demographic Variables, India.

* Corresponding author. E-mail address: vangapanduramadevi1970@gmail.com

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1. Introduction
Job satisfaction of employees is important for both employees as well as to the organization. Human
resources are the strategic resources that can make a difference to the organization in the positive
direction. It is increasingly being realized that by properly managing human resources, organizations can
reach their goals in a better manner. If the employees are satisfied and contended, their commitment
levels will be high and hence their contribution to the organization also will be high. When employees are
satisfied with their jobs, the Quality of work improves and productivity increases. They tend to continue
in the job and be more loyal to the job and to the organization. Lower employee turnover will further
reduce recruiting and training costs for the banking organizations.

The work behaviors and attitudes of employees in the banking sector have a great importance for
increasing the level of service quality and in turn the level of marketing success. According to the
findings of Babakus et al. (2003), job satisfaction is one of the significant drivers of performance among
frontline service employees. Therefore, it may be inferred that customer satisfaction depends on employee
satisfaction (Koc, 2006).

2. Literature Review
Job satisfaction is a pleasant feeling experienced by the employee when there is a fit between what he
expects and what he actually derives from his job. Different research studies have revealed various factors
that influence job satisfaction. Some of these factors relate to job characteristics (Hackman & Oldham
1975), culture, environment, and organizational climate (Litwin & Stringer 1968). The research
conducted by Vander et al. (2001) pointed that group level task interdependence enhances the feeling of
belongingness and coordination among employees and as a result the degree of job satisfaction increases.
Jonge et al. (2000) conducted an empirical study, the results of which substantiated the view that high-
strain job with high demand and low control features have negative repercussions to health leading to
emotional exhaustion and health complaints. On the other hand the active job characterizing high
demands and high control lead to positive outcomes such as job challenge and job satisfaction. The
research conducted by Bajpai & Srivastava (2002) revealed that a secure job and good welfare policies
increase the degree of job satisfaction whereas threat of layoff, rapid turnover, inadequate welfare
schemes, and less opportunity for vertical growth increase the degree of job dissatisfaction. If
organization invests in employee’s well-being it results in higher satisfaction in employees. Taylor (2000)
reported that there is direct relationship between job satisfaction and employee’s well-being.

Organizational politics also influences job satisfaction. Vigoda (2000) reported that there is negative
relationship between perception of organizational politics and job attitudes (job satisfaction and
organizational commitment). On the other hand organizational politics has a positive relationship with
intention to leave the job (exit), and a stronger positive relationship with negligent behavior (neglect).
Low job satisfaction, low organizational commitment, high attrition rate and negligent behavior have
damaging effect which an organization cannot afford.

Another category of factors that influence job satisfaction are demographic variables. Sinacore (1998)

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conducted a study which revealed that some demographic variables such as age, race and employment
status are the important factors that influence job satisfaction. The qualification is another important
factor that will affect job satisfaction. If there is no synchronization between qualification of an employee
and his job, naturally it will result in job dissatisfaction. In this direction Johnson & Johnson (2000)
reported the effects of perceived over qualification on dimensions of job satisfaction, based on relative
deprivation theory. The results supported the hypothesis that perceived over-qualification negatively
influences job satisfaction. The relationship between designation of the teaching staff and job satisfaction
is found to be significant in both Central and State universities (Rama devi, 2006). Okpara (2004)
suggested that job satisfaction in the IT sector can be predicted from personal variables, but their effect is
not the same (Bilgic, 1998; Brief & Aldag, 1975; Weaver, 1977).

The main aims of this study are examining factors influencing job satisfaction of employees in private
banking sector of India; and examining the effect of demographic factors on job satisfaction.

3. Research Methodology

3.1. Statistical Population

Employees working in banking sector in Vijayawada constitute the population for the present study.

Sample includes 103 employees drawn from 9 private sector banks using simple random sampling
method. Primary data were collected using a structured questionnaire. Sources of secondary data were
also used which include research articles in journals, web sources, etc. Data were analyzed using Mean
and Chi-square test.

3.1.1. Demographic Information of Respondents

Table 1. Gender Distribution of the Respondents

Gender Frequency Percentage

Female 81 78.6
Male 22 21.4
Total 103 100

Table 1 reveals that majority of the respondents i.e. 78.6% respondents are male and 21.4% respondents
are female.

Table 2. Marital Status of the Respondents

Marital Status Frequency Percentage

Married 39 37.9
Single 64 62.1
Total 103 100

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Table 2 shows that majority of the respondents (62.1%) are single and 37.9% are married.

Table 3. Age Distribution of the Respondents

Age In Years Frequency Percentage

20-25 31 30
26-30 41 39.9
31-35 17 16.6
36-40 10 9.6
41 and above 4 3.9
Total 103 100

It is observed from table 3 that majority of the respondents (69.9) are in the age group of 20 – 30 years.

Table 4. Qualification of the Respondents

Qualification Frequency Percentage

Diploma 1 1
Post-Graduate 69 67
Under-Graduate 33 32
Total 103 100

Table 4 presents that majority of the respondents (67%) are post graduates.

Table 5. Experience of the Respondents

Experience Frequency Percentage

Less than 1 year 26 25.2
1–5 51 49.5
6 – 10 19 18.4
11 – 15 3 2.9
Above 15 years 4 3.9
Total 103 100

Table 5 portrays that nearly 50% of the respondents have 1-5 years of experience, 25% have less than 1
year and nearly 4% of the respondents have more than 15 years of experience.

Table 6. Nature of Work

Nature of Work Frequency Percentage

Permanent 76 73.8
Temporary 27 26.2
Total 103 100

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It is observed from table 6 that in the present study, 73.8 % respondents are permanent job holders and
26.2 % respondents are temporary job holders

Table 7. Working Status

Working Status Frequency Percentage

Full Time 102 99
Part Time 1 1
Total 103 100

Table 7 shows that almost all the respondents are full time employees.

Table 8. Number of Dependents

NO of Dependents Frequency Percentage

1 16 15.5
2 45 43.7
3 23 22.3
4 & above 19 18.4
Total 103 100

It is observed from table 8 that 15.5 % of respondents have 1 dependent in their family, 43.7 % of
respondents have 2 dependents in their family, 22.3 % of respondents have 3 dependents in their family,
18.4 % of respondents have 4 and above dependents in their family.

Table 9. Annual Income

Income (In Lakhs) Frequency Percentage

1 4 3.9
2 26 25.2
3 36 35.0
4 & above 37 35.9
Total 103 100

Table 9 presents that only 3.9 % respondents are earning 1 lakhs per annum, 25.2 % respondents are
earning 2 lakhs per annum, 35.0 % respondents are earning 3 lakhs per annum and 35.9 % respondents
are earning above 4 lakh per annum.

3.2. Instrument

A structured questionnaire was designed with 38 questions using Likert scale. The first part of the
questionnaire addresses demographic details and the second part of the questionnaire deals with factors of

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job satisfaction. Cronbach’s alpha is calculated and the value is 0.76 which indicates the reliability of the
instrument.

4. Results
The factors of job satisfaction are classified as follows: (1) Organizational factors; (2) Job related factors;
and (3) Personal factors.

Table 10. Mean Scores of Organizational Factors of Job Satisfaction

Organizational Factors Mean Rank

Working conditions in bank 3.84 1
Benefits received 3.83 2
Healthy work environment 3.82 3
Good welfare policies 3.81 4
High support for team work 3.78 5
Continuous feedback given by superiors 3.76 6
Location of work 3.71 7
Bonus and incentives 3.69 8
Opportunities to learn new skills 3.69 8
HR practices 3.68 9
Recognition for work accomplishment 3.64 10
Praise received for outstanding efforts 3.62 11
Opportunity for promotion 3.58 12
Salary 3.55 13
Overall compensation package 3.51 14
Rewards offered by the management 3.50 15
Paid vacations/ sick leaves offered 3.48 16
Flexibility in scheduling work 3.48 17
Training given 3.41 18
Appraisals system 3.37 19
Leave facilities 3.29 20
Recognition for suggestions 3.27 21
Accommodating family-related needs 3.18 22
Involvement of family members in work celebrations 3.13 23
Working hours 3.07 24
Study or training leaves 3.01 25
Management attitude 3.00 26

Table 10 depicts that working conditions in bank, benefits received, healthy work environment, welfare
policies are the factors that have high mean scores indicating higher satisfaction and the factors that have

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least mean scores include working hours, study or training leaves, attitude of management reflecting
lower level of satisfaction.

Table 11. Mean Scores of Job Related Factors

Job Related Factors Mean Ranks

Challenging and responsible job 4.17 1
Dignity and respect provided by the job 4.13 2
Relationship with superiors 3.84 4
Meaningful work 3.83 5
Relationship with co-workers and subordinates 3.66 6
Superior’s encouragement for development 3.50 8
Role clarity 3.38 9
Job Security 3.27 10
Work load 3.24 11
Sense of achievement 3.06 12
Role overload 2.78 13
Tedious work 2.76 14

The noteworthy observations presented by Table 11 are that respondents are more satisfied with
challenging and responsible jobs and dignity and respect provided by the job which is reflected in high
mean scores of the factors. The respondents reported role overload and tedious work with which they are
relatively less satisfied as reflected by low mean scores.

Table 12. Mean Scores of Personal Factors

Personal Factors Mean Ranks

Opportunities for personal growth 3.93 1
Personal responsibilities 3.51 2
Impact of work stress on health and personal life 3.21 3
Time for family members 2.75 4

Table 12 presents that the mean score of opportunities for personal growth is high (3.93) which indicates
that banks provide good opportunities for growth of employees and the factor with least mean score is
quality time for family members (2.75). This indicates that they are relatively less satisfied with this
factor and feel that they are not able to balance their work and family related matters comfortably.

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Table 13. Influence of Demographic Factors on Job Satisfaction

Demographic Variables Chi-Square Value Significant/Insignificant

Designation 1931.452 Significant at 1 % level
Gender 74.523 Significant at 5 % level
Age 1245.914 Significant at 1% level
Marital status 68.086 Significant at 5% level
Qualification 76.530 Insignificant
Experience 383.709 Significant at 1% level
Nature of job 61.996 Insignificant
Work status 103.000 Significant at 1% level
Nature of family 69.120 Significant at 5% level
Income 421.635 Significant at 1% level
Number of dependents 532.552 Significant at 1% level

It is evident from Table 13 that barring qualification and nature of job, chi-square value is significant for
all other variables indicating that there is significant relationship between socio-economic and
demographic variables like designation, gender, age, marital status, experience, work status, nature of
family, income and number of dependants and job satisfaction.

5. Discussion & Conclusion

It is well established today that it is not just financial and technological capital that provide companies
with the competitive edge, but people, or human capital. In order to retain and attract the talent pool in to
the organization employees should be satisfied. Banking sector is no exception and the banking
organizations have to ensure that their work force is satisfied with their jobs so that they can enjoy the
benefits stemming from contented employees.

The present research is undertaken to study job satisfaction of employees in banking sector in
Vijayawada. The results revealed that the respondents are more satisfied with factors like working
conditions in bank, benefits received, healthy work environment, welfare policies, challenging and
responsible jobs, dignity and respect provided by the job, good opportunities for growth of employees and
relatively less satisfied with working hours, study or training leaves, attitude of management, role
overload, tedious work and quality time for family members.

The main limitation of the study is the sample size which is confined to 103 employees drawn from 9
private sector banks in Vijayawada. The credibility of the results will be enhanced by increasing the
sample size and covering more areas. Further studies can be undertaken by increasing the scope
incorporating further statistical analysis using factor analysis technique and increasing the sample size
covering different types of banks working in different parts of the country.

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